The primary difference between the gross method and the net method of recording invoices is:
A) when the invoice is paid.
B) when the discount is recognized.
C) the gross method is only used when there are no discounts available.
D) the net method does not use a voucher system.

Question

Quizplus · Accepted Answer

The primary difference lies in when the discount is recognized. In the gross method, discounts are recognized upon payment within the discount period, while in the net method, discounts are assumed to be taken and recorded immediately with the invoice.

The Primary Difference Between the Gross Method and the Net